Your Top 6 Questions Answered By An Australian Property Lawyer

1. What type of residential property can a foreign person buy in Australia?

The types of residential property that a foreign person can buy in Australia include:

• New dwelling: completed units built and developed by developer and has not been previously occupied.
• Off-the-plan property: dwellings that are under construction.
• Vacant residential land: land that has no substantive permanent building on it

Note: From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings in Australia.

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2. Is there any governmental approval required when a foreign person purchases a residential property in Australia?

If you are a foreign person, you need to obtain the Foreign Investment Review Board (FIRB) approval from Australia Taxation Office (ATO) before purchasing a residential property. The ATO generally approve an application to purchase a residential property within the residential property a foreign person can buy in Australia as discussed in Question 1.

The FIRB application fee is as follow:

• Purchase price $1 million or less - $15,100
• Purchase price above $1 million but below $2 million - $30,300

Note: The FIRB fees increase on 1 July every year (start of financial year), lock in property before 30 June for submission.

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3. I am a temporary resident, am I a foreign person?

You are a foreign person if you are NOT:

• An Australian citizen
• An Australian permanent resident
• A New Zealand citizen

So yes, a temporary resident is a foreign person in the Australian foreign investment legislation.

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4. What is the land transfer duty rate (stamp duty) payable by a foreign person?

The local stamp duty rate payable is approximately 5% to 5.5% of the purchase price. Foreign purchasers pay an additional 8% stamp duty surcharge in addition to the local stamp duty rate.

Note: If your Australia PR is granted before settlement, the 8% stamp duty surcharge will be waived.

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5. Are there any stamp duty concession available for foreign purchasers?

Yes, the good news is that a new temporary off-the-plan stamp duty concession is available in Victoria for off-the-plan dwellings such as land and building packages, residential towers and low-rise apartments.  Our legal consultant will be able to advise how the concession works.

Note: Contract must be entered into on or after 21 October 2024 and before 20 October 2026.

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6. When is the deposit and the balance purchase price payable?

10% deposit is payable at signing of contract to the developer’s lawyers and will be held in the lawyers’ trust account until the property is completed and new titles are registered. The 90% balance purchase price is only payable at settlement i.e. when the property is completed. You can prepare funds and application for loan during this period.

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Get Connected With The Right People

Buying from overseas doesn’t need to be confusing — with the right team of lawyers, accountants and brokers, the process is smooth and stress-free.

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We can connect you with trusted professionals we work with every day. We have a network of professionals qualified to practise law in both Australia & Malaysia, who speak English, Malay, 中文, 廣東話.

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Want a list of our recommended contacts? Just get in contact with our team below and we can connect you with the right people.